[D9242ABF], Letter from Alfred Ord Tate to Thomas Alva Edison, December 9th, 1892


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[D9242ABF], Letter from Alfred Ord Tate to Thomas Alva Edison, December 9th, 1892




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Thomas A. Edison Papers, School of Arts and Sciences, Rutgers University


December 9, 1892.
My dear Mr. Edison,
Mr. Bush informed the Board at their meeting on Tuesday last of your wishes concerning the Trust, which were to affect that the North Am. Phonograph Co. should account to this Trust for the sale of one thousand machines at ninety dollars each, and that compensation should be made for any machines that were sold below this price, in order that the full amount of ninety thousand dollars should be paid in.
I have another letter to you referred to the decrease in our receipts consequent upon the transfer to us of the territory of various local companies. The only way in which we can recoup ourselves is through the sale of machines. The period through which we are passing now is one which is giving us a tight squeeze and this is more especially so for the reason that we derive practically no benefit from the sale of phonographs, but have depend upon the proceeds from the sale of supplies and the rental of machines. Our expenses very naturally are higher now than they were a few months ago, and some arrangement must be made under which we can obtain relief. To affect this I desire to make the following proposition, namely, that we account to the Trust for one-third of the total number of machines sold by us during any one month at ninety dollars each. To illustrate the effect of this, during the month of November we sold ninety machines at [illegible] each, which netted us the sum of $7,650. If we were to account to the Trust for 30 of these machines at $90 each, and pay in $2700, it would leave us a balance of about $5,000 to apply for current expenses. This arrangement could continue until we had accounted to the Trust for the full number of 1,000 machines, and would probably wipe it out in less than six months. I will be glad if you will indicate your [illegible] to this proposition.
Four months ago we were selling about 20 machines per month. As stated above the number has increased to 90 during the month of November, and the increase beyond this will be very rapid, as we are [illegible] our agencies in shape. The number of machines sold simply depends the number of outlets.
Yours very truly,
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